Synchrony Financial is rewriting the rules of consumer lending with a new system that approves credit in just six seconds—without using traditional credit scores. The approach, developed in-house and dubbed “Home Brewed,” marks a bold departure from decades of reliance on FICO ratings, signalling a shift in how creditworthiness is assessed in the digital era.
A home-grown algorithm replaces legacy scores
At the core of Synchrony’s new process is a proprietary data model built from scratch by its own engineers. Rather than relying on credit bureau scores, the system analyses hundreds of real-time data points drawn from an applicant’s banking behaviour, purchase history, payment patterns, and digital identity.
This alternative scoring model is designed to provide faster and more inclusive lending decisions, especially for younger borrowers and those with limited credit histories. According to company executives, the process is fully automated, issuing approvals in under six seconds and used across Synchrony’s retail partners and branded credit card offerings.
Challenging the credit score monopoly
FICO scores have dominated consumer lending in the US for more than three decades, but critics argue they are outdated, opaque, and exclusionary. Synchrony joins a growing number of fintechs and alternative lenders seeking to move beyond the traditional credit framework, citing greater accuracy and improved access for underserved populations.
“What we’ve built is tailored to today’s economy,” said Dana Elkins, Head of Consumer Analytics at Synchrony. “We’re capturing dynamic behaviours rather than relying on static numbers.”
The company has been piloting the model for several months, reporting improved risk segmentation and lower default rates among early cohorts compared to conventional methods.
Speed, scale, and scrutiny
Synchrony’s move is also aimed at improving customer experience in a hyper-competitive retail lending environment. With consumers increasingly demanding instant decisions, a six-second approval window gives the lender a distinct edge—especially in high-volume settings like e-commerce checkouts or in-store financing offers.
But the shift away from established metrics raises questions for regulators and consumer advocates. Transparency, bias, and data privacy are key concerns as AI-driven credit models gain traction. Synchrony insists its model has been extensively tested for fairness and complies with all federal credit reporting standards.
Implications for the industry
If Synchrony’s system proves scalable, it could trigger wider changes across the credit ecosystem. Traditional credit bureaus may face declining relevance, while banks and retailers look to adopt faster, more adaptable underwriting frameworks.
Experts warn that a fragmented landscape of proprietary scoring systems could complicate oversight and comparability. However, advocates argue that competition and innovation in the credit space are long overdue.
For now, Synchrony is betting that speed, personalisation, and independence from credit scores will appeal to both retailers and borrowers navigating a changing financial landscape.
REFH – Newshub, 4 August 2025
